DIRE DAWA UNIVERSITY

SCHOOL OF INSTITUTE
(IOT) OF TECHNOLOGY
DEPARTMENT OF COMPUTER SCIENCE
PROJECT ON ENTREPERENUER
FEASIBILITY STUDY AND
BUSINESS PLAN ON
PHARMACY

GROUP MEMBERS GROUP ID

• CHALI GUDINA ………………………………………………………………………… R/1834/09

• MIKIAS FOLA ………………………………………………………………………… R/ /09

• BETHEL BEKELE …………………………………………………………………….……R/ /09

• MAHILET ANTENEH ………………………………………………………………………… R/1903 /09

• MUSTAKIMA ABDULAHI ………………………………………………………………………… R/3747 /09

• HERMILA NIGUSU ………………………………………………………………………… R/ /09

Table of Contents pages

Statement of declaration
We here declare the project done on pharmacy business plan is done for the
specific purpose of entrepreneur course for third year computer science students.
And assure that this project is our original work and not a product of plagiarism.
And accept the teacher may check the originality of our work and take full
responsibility for our work. we acknowledge that we must take reasonable steps
to ensure that our project for submissions – are kept safe and secure so that we
do not enable another person/groups to copy our work.
We acknowledge that our teacher have thought us about the conduct for a
good feasibility study and business plan. And how to avoid plagiarism and other
assessment irregularities

Executive Summary
The pharmacy business plan main goal is to provide prescription medications (a
medical substance) for our customers at the o prices on the market. We will be able
to sell prescriptions at reduced prices by carefully optimum efficiencies in our
operations and by targeting a specific segment of the market - those customers who
pay for their prescription medications themselves. By focusing on this segment, it
gives us additional efficiencies - we avoid disruptions in cash flow often associated
with insurance payments and we can eliminate unnecessary services for the type of
knowledgeable, repeat customer taking maintenance-type medication.
Our pharmacy business plan will operate from one store that will serve both mail
order customers and those who visit in person. We will thrive (successfully
develop) by employing friendly and knowledgeable personnel, which, along with
our great prices, will drive the repeat business that we will rely upon. Our
pharmacy business plan will appeal more and more to the customer's sense of value
and convenience. Thus, we will act for our customers to get their medical
prescriptions daily in correct manner way in order to improve the more problem
located behind pharmacies.

The Discount Pharmacy will be led by Mr. Chali Gudina, with experience in the
pharmaceutical industry. Costs will be minimized by maintaining only one
pharmacist and filling the void with pharmaceutical techs. We expect to reach
profitability by our second year and will generate substantial (large) sales by year
three.

CHAPTER ONE
BUSINESS BACKGROUND
• INTRODUCTION:
Our project as we seen in above is going to study in small pharmacy business plan
including all requirements needed for our customer in order to solve the social
problem by serving faithfulness and also to save profit in accurate or proper way.

1.2 OBJECTIVES
1.2.1 General OBJECTIVE
The general objective or general purpose of has been to make drugs and
medicines available.
1.2.2 SPECIFIC OBJECTIVE
The specific objectives in our pharmacy business plan include:
• Incrementally growth an employee those who can act respectively their
functions
• Develop a business that survives off its own cash flow
• Exceed customer expectations with superior pricing
• Increase the number of customers by more than 30%per year
• Accurately dispense medications 
•

• VISSION
In our pharmacy business plan we are dedicated to the highest level of excellence
and are committed to improving medication use and advancing patient care. We
strive to support optimal medication and therapy outcomes by encouraging
healthy lifestyles, promoting public health, and providing education to our
membership and communities.
• MISSION
Our pharmacy's business plan mission is to provide our customers with the best
prices for their prescription medications. Our convenience and services will exceed
the expectations of our customers. We will improve health and reduce illness
through patient-center quality healthcare that is accessible and seamless,
comprehensive, appropriate and cost-effective; in an environment of continuous
learning and relevant research.
• Keys to success

The keys to success are:

• Satisfy our customers so they will return again and again
• Maintain low overhead and operating costs
• Provide better prices than all our competitors

Start-up Summary
Our Pharmacy business plan will incur (takes responsibility of) the following start-
up equipment costs:
• Office equipment including chairs, file cabinets, and desks.
• Main computer server with a laser printer, and back-up system.
• Software: Microsoft Office, QuickBooks Pro, drug interaction software,
Physician Desk Reference software detailing side effects and other
information pertinent to the customer.
• Scales for shipping.
• Telecom system.
• Storefront build-out.
• Start-up inventory.
• Rent, utilities, insurance.
• Assorted bottles, boxes, envelopes, etc. for dispensing and shipment.
• Front counter, storage bins, cash register.
• Computer terminals.
CHAPTER TWO
Feasibility Analysis
2.1 Technical Feasibility Analysis
Our pharmacy business plan service will be technically feasible because the
technology and the materials that is used in our business plan production center
and maintenance is available at the moment. And is the modern way of
performance, with the most skilled workers makes our pharmacy business plan
center more feasible for the business.
2.1.1 Product or service plan
Our Pharmacy business plan offers a wide range of prescription drugs to patients
based on nationally as wanted. Both generics and name brands are offered.
In order for a customer to purchase medications mail order, they must first contact
The Discount Pharmacy over the phone. The customer then needs to either mail in
the prescription, fax it, or email it. Once it is received and payment arrangements
are complete, the medicines will be sent out to the customer via our postal service
Local customers may stop by the store front to pick up the medications.
Our pharmacy business plan will be able to survive on lower margins due to
operating efficiencies gained through national mail order operations and not
accepting insurance policy drug plans which hampers cash flow. Our pharmacy
business plan will also save money by not paying for customer's unlimited access
to a pharmacist. If a customer has a question regarding a drug, the pharmaceutical
technician will attempt to answer it. As a last resort the pharmacist will provide the
answer. Generally, the technician or the accompanying printed literature will
answer the question.
This model of saving costs by not providing unlimited access to the pharmacist
will be successful because the majority of customers will be customers who have
been taking said drug for a while, as opposed to a new prescription, and will not
require their hand to be held during the transaction. They are interested in The
Pharmacy as an inexpensive source for their medication.
With each order a printout will accompany the medications providing directions on
how to take the medications, other drugs that should be avoided concurrently, and
other useful information. Our pharmacy business plan will be using computer print
outs from industry software to reduce the cost of providing this information.
Our pharmacy business plan will only service customers who self-pay. The self-
pay customers will be attracted to our pharmacy business plan because of its
superior prices. For many Americans that do not have drug plans, including the
vast majority of local user’s, a discount on drugs is very welcome on today's
increasingly tight monthly budgets
Note--while the term "self-pay" is typically associated with the notion that the
customer is paying for the medication out of pocket without insurance, it is used in
this context as the customer paying for the medications up front regardless if they
have insurance. They may be paying out of pocket, or they may be paying up front
and then submitting to their insurance company's drug plan to reimburse them later.
 2.1.2 Business model
Our business model deals with developing pharmaceutical to provide prescription
medications and maintenance that helps users. To have the services easily with
more understandable and helpful guaranteed work which Most of us where seeking
it. Also what makes it special is giving any advanced consolation service at any
problem situation the customer is in.
2.1.3 Competitive value
By identifying our competitor’s weakness we design more advanced way to
express the industry. Many of the compotator use prescription less and their style
of distributing method of medication to customer is so not sufficient compared to
us, Since we can use a technology in order to distributing our medication and also
we have a knowable pharmacist to give the essential prescription and in optimum
cost to serve what our customers want.
2.1.4 Location Selection
The Pharmacy business plan is located in Dire Dawa. The reason we choose this
place between the town and the trade place. And have plan to open other branches
in other region of the country.
Thus we have hope to get a more benefit and also to solve any problem located
behind other pharmacy business by work haring.
2.1.4 Technology
In our pharmacy business model we use technology since it is quickly
transforming the pharmacy and helping pharmacists enhance operational
efficiency, provide better customer service and improve patient  outcomes.
For prescribers and pharmacists, IT can enable the storage of structured
patient records, facilitate the electronic prescribing, dispensing and
administration of medicines, automate the handling of medicines in the
supply chain and provide tools for monitoring the efficacy and safety of
medicines in use.
2.1.5 Legal Ownership
Our pharmacy business plan is limited liability (responsibility) corporation. And
our pharmacists have legally certificate to do in our pharmacy business plan.
The majority stock Mr. chali Gudina.

2.2 Market Feasibility Analysis

Our service will be targeting every one using any think that customer can need and
necessary for them by electrical components to serve his customer problem,
Pharmacy business plan is available for personal usage and company usage .Our
service will be served with high quality manufacture medication that will satisfy
the customers need that will make them happy to be an everlasting (long term)
customer. Our pharmacy business plan target market consists of two different
groups, local customers or walk-ins, and mail order customers. 
Our pharmacy will employ two different strategies to reach these two diverse
market segments.

Delivery schedule
Our pharmacy business plan customers can be delivery schedule broken down into
two different groups, mail order customers and walk-in customers:

Mail order customers. This group of customers’ orders their medication through
the mail in an effort to save money. Generally, the mail order customers are older
in age, typically over 50. In general, elderly customers consume more medication
relative to younger people. The mail order customer will typically purchase
maintenance medications - prescriptions for an ongoing ailment that requires
regular treatment. This group of customers will also be more likely to purchase
several months of medication at once.

Walk-in customers. This group of customers are also looking for the lowest prices
for their medication. However, they tend to purchase medications monthly at their
local pharmacy, often at a higher price. There is not a common demographic for
this group of people, other than living in the Portland metropolitan area. Some of
these customers will pay for the medications out of pocket and some will submit a
claim to their insurance company for reimbursement at a later date.

2.2.3 i. Competitive Strategy

Our pharmacy business plan competitive edge is superior pricing. To do that we
must maintain our position as the low-cost provider by painstakingly ensuring that
costs are kept low through operating efficiencies.
We will be able to do that by eliminating some of the services traditionally offered
by pharmacies. For example, we will employ only one pharmacist and use
pharmaceutical technicians to fill the void. As long as a pharmacist is on site
during the hours of operation, we can use the pharmaceutical techs for all other
capacities where other pharmacies use pharmacists. Other efficiencies are created
by having only a small store front and conducting most of our business through
mail order.
Finally, our pharmacy business plan is not designed to hold the patient's hand
during their purchase. We expect that the vast majority of our customers will
already be informed of how to take the medication, and any side effects or drug
interactions that should be avoided. We will simply provide each patient with a
print out of all the relevant information for consumption of the medication.

2.2.3 ii. Sales Strategy

The sales strategy will be based on generating long-term relationships with
customers. To facilitate that, we will provide medications at superior prices,
have medicines in stock for both quick shipment and store front pick up, and
provide superior customer service. All sales agents will be trained to provide
friendly, knowledgeable customer service. By keeping to these simple, yet
effective, business practices, we expect that our customers will make our pharmacy
business plan their exclusive source for medications. For some, medications are an
integral part of their lives, so establishing long-term relationships will ensure a
large, loyal customer base.

CHAPTER THREE
Financial plan
Requirements:
MATERIAL
Material Cost
Measure racks 5,000
Dispensable gloves 5,000
Refrigerators 25,000
Antibiotics 5,000
Ant paints 5,000
tabulate 3,000
Syringes 1,000
Spoons 1,000
capsulate 5,000
ampule 5,000
Flood/Glucose 5,000
Computer 25,000
software 1,00
Total 91,000

LABOR
Labor Cost
Manager 8,000/month
Administrative 8,000/month
 Pharmacists 8,000/month
Guards 4,000/month
Janitors 4,000/month

Where house
Labor Cost
Store 10,000birr/per
Office 10,000birr/per

Summary of the Financial Feasibility Study

To conclude the technical feasibility this are all the things that are needed in the
development of our business plan
Economic feasibility
Fixed cost
Reason of cost Cost
Store rent 10,000birr/month
Office rent 10,000birr/month
Computer needed 25,000
medications 50,000
Flood medications 50,000
Total 145,000

Variable cost
Variable cost
Software 10,000
Employee payment 40,000birr/month
Total 5,0000

Cost Projection
Our cost projection is calculated by adding the average fixed cost and the average
variable cost.
Cost projection = 145,000+50,000 birr/3 =195,000/3=65,000
To start our pharmacy business plan we have 200, 000 and cost in assumption
196,000 and sells product in one year 195,000birr.
• Revenue=SC*Q and = 196,000
• Variable Cost =VC*Q =195,000
Profit = SC*Q-VC*Q-investment cost =200, 000
Let our assumption profit at the first time is 0
0 = 196,000Q-195,000Q-200, 000
1,000Q = 200,000birr
Q =200
Thus BEP at first year is 200 unit